Silver Price Forecast – Silver Markets Gapped Lower

Silver markets gapped lower to kick off the week, but then turned around to fill that gap. We are testing the $18 level, which of course has a lot of psychological significance built into it.
Christopher Lewis
Silver gold

Silver markets gapped lower to kick off the week, but then turned around to fill the gap going forward. At this point, the market is likely to also pay attention to the $18.00 level which of course is a psychological barrier, and then beyond that you have the previous uptrend line that the market has failed at. Because of this, I believe that the silver market is in the process of making a rather important decision. Quite frankly, if we can break above the uptrend line on a daily close, then it would be a very bullish sign for silver.

SILVER Video 31.12.19

On the other hand, it if the market breaks down below the $17.85 level, then it’s possible that the market will go looking towards the 50 day EMA which is closer to the $17.30 level. At that point, there would probably be buyers, and that of course down below at the 200 day EMA which is currently at the $16.68 level. We are essentially “trapped” between these major technical levels, so I think we will continue to consolidate in this general vicinity, especially considering that the end of the year is now upon us, and the volume of course won’t necessarily be strong. With this, we need to see volumes pick up to make a longer-term decision but in the short term we may be able to play a bit of ping-pong between these levels, but overall, it’s very likely that the short-term traders will love this market. With this, be quick to go in and out of positions

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.